Correlation Between Vivakor and First Internet
Can any of the company-specific risk be diversified away by investing in both Vivakor and First Internet at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Vivakor and First Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivakor and First Internet Bancorp, you can compare the effects of market volatilities on Vivakor and First Internet and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Vivakor with a short position of First Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivakor and First Internet.
Diversification Opportunities for Vivakor and First Internet
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vivakor and First is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Vivakor and First Internet Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Internet Bancorp and Vivakor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Vivakor are associated (or correlated) with First Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Internet Bancorp has no effect on the direction of Vivakor i.e., Vivakor and First Internet go up and down completely randomly.
Pair Corralation between Vivakor and First Internet
Given the investment horizon of 90 days Vivakor is expected to under-perform the First Internet. In addition to that, Vivakor is 10.25 times more volatile than First Internet Bancorp. It trades about -0.02 of its total potential returns per unit of risk. First Internet Bancorp is currently generating about 0.28 per unit of volatility. If you would invest 2,468 in First Internet Bancorp on September 1, 2024 and sell it today you would earn a total of 56.00 from holding First Internet Bancorp or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivakor vs. First Internet Bancorp
Performance |
| Timeline |
| Vivakor |
| First Internet Bancorp |
Vivakor and First Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivakor and First Internet
The main advantage of trading using opposite Vivakor and First Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivakor position performs unexpectedly, First Internet can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Internet will offset losses from the drop in First Internet's long position.| Vivakor vs. Petroleo Brasileiro Petrobras | Vivakor vs. Equinor ASA ADR | Vivakor vs. Eni SpA ADR | Vivakor vs. YPF Sociedad Anonima |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |